11/06/09 – My Stop Loss was taken out right at the close in today’s session, giving a 1% loss on my trading account balance for this trade on the Starbucks stock. The support level that has held three times before finally failed. This Starbucks Stock trade has been going nowhere and I have had opportunities to time stop at the break even point, but I think my decision making process was clouded by the strong support level. Main lessons learned here are despite apparent support levels, they can only be tested so many times before they fail and I must be even stricter on my time stop strategy in these mixed market conditions. I will also watch the price action over the coming weeks to see if my stop loss was maybe too tight. Chart as Below.
06/09/14 – This trade has now been on for 18 bars (days) for the Starbucks Stock and closed at the Beak Even point on Friday. It did have very positive session on Friday fueled by an announcement of a plans for New Store formats to Drive Growth (Article on this HERE ). Obviously I need to start thinking about time stopping this trade and have looked at both the Weekly and 240Min Charts for any technical guidance on my decision, which didn’t really help! Observations on the Daily time frame that I entered the trade on are that the Stop Loss has been tested and formed a new wave 4 low, just $0.07 above my Stop Loss, which together with the fact that this level has been tested before after the Gap up (Highlighted on the chart below) suggests this is a good support level. Further the “normal” TJ’s Ellipse, yet to be taken out, is showing a predictive support at 76.37 which is above the Stop Loss. My only concern is that the oscillator has not gone positive yet (as at the foot of the chart below) and so must keep an eye on this during the first few bars (days) next week. With all these considerations, I have decided to let this trade on the Strabucks stock play out next week and see if the momentum from Friday’s announcement can continue and not be too hasty to time stop it just yet. Chart s Below.
12/08/14 – This Starbucks stock swing trade triggered during yesterday’s US session and so I am into this trade. The price didn’t quite cross over the 6/4 MA High line( dark blue moving average line) in the session, something I would like to see happen this week and close above it, which would give a good indication that the trade has gathered good momentum before the weekend. US futures are looking positive at the time of writing this update but no pre-market action yet registered against this Starbucks Stock. Chart as below.
07/08/14 – This Starbucks Stock on the daily chart has pulled back on a wave 4 from the main Bullish trend. Currently there are 7/9 of my indicators in the green, with the TJ’s Ellipse set to be taken in today’s session. This will make a convincing 8/9 indicators in the green for a good setup on this potential Long trade on the Starbucks Stock. The current Wave 4 pull back extreme low is at a support level that was last tested on the 26th June this year (Pink Ellipse) when a doji was formed on this daily chart, which again is another positive indication. I have opted for a conservative entry into the Starbucks Stock, which is out of the Trend Channel but also above the highs of the last 4 bars (days). I have placed a Stop Buy order @ 77.90 with a Stop Loss @ 76.10, whilst the Take Profit Limit order is set to 83.00 giving a Risk to reward of 1:2.75 . This potential trade needs to hold the current support level for the next two days and maybe trigger before the weekend, depending on market conditions. Charts as Below